AutosStrengthened ties: Volkswagen and SAIC to co-launch electric models in China

Strengthened ties: Volkswagen and SAIC to co‑launch electric models in China

Visualisation of the SAIC - VW factory in Shanghai
Visualisation of the SAIC - VW factory in Shanghai
Images source: © Press materials

1 July 2024 16:08

The Volkswagen Group is officially strengthening its cooperation with the Chinese giant SAIC. The partnership aims to provide tangible benefits to both parties, particularly reinforcing the Germans' position in the Chinese market.

The new agreement between Volkswagen and SAIC took official form on 27 June 2024. The plans are ambitious—envisioning the construction of a joint factory and producing numerous electrified models. The first units are expected to hit the market as early as 2026.

These will include fully electric vehicles, hybrids, and plug-in hybrids. At least five models are planned, but both parties do not rule out further expanding the lineup.

It is worth mentioning that this will not be the first instance of German-Chinese cooperation. The SAIC-VW joint venture has been operating in China for a long time, producing local versions of Volkswagen, Skoda, and Audi models. However, up until now, these have mainly been combustion engine cars. The future, on the other hand, lies in electrification.

Notably, the Germans are simultaneously collaborating with another Chinese manufacturer, Xpeng. In February 2024, they presented a plan to create two electric compacts. However, the details remain unknown for now.

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